On July 31, 201X, Lucky Corporation had the following stockholders equity: Common Stock, $13 par value, authorized

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On July 31, 201X, Lucky Corporation had the following stockholders’ equity:

Common Stock, $13 par value, authorized 89,000 shares, 59,000 shares issued and outstanding

$767,000

Retained Earnings

240,000

Total Stockholders’ Equity

$1,007,000


On August 5, 201X, the board of directors declared a 7% stock dividend to be issued on September 6, 201X, to the stockholders of record on August 19, 201X. At time of declaration the market price was $25 per share. Prepare the appropriate journal entries for this stock dividend.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Related Book For  book-img-for-question

College Accounting A Practical Approach

ISBN: 9780134729312

14th Edition

Authors: Jeffrey Slater, Mike Deschamps

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